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Governor of BoG give explanations for declining Parliament’s invitation

Governor of the Bank of Ghana, Dr. Ernest Addison, has provided a detailed response to the reason the Central Bank will not be appearing before a Parliamentary Committee to answer a petition by some shareholders of defunct UT Bank and Unibank. 

According to him, one of the major reasons is to allow the legal proceedings to flow smoothly, since some of the shareholders have already slowed the process with many counter suits.

Speaking at the Ghana Chamber of Commerce and Industries Business Forum,  Dr. Addison said “running to parliament to seek redress for the revocation of an institution’s licence is not one of the processes laid down under the law for those who feel aggrieved by a licence revocation by the Bank of Ghana.  There are already a number of actions filed in court and at arbitration by the same persons who run to parliament for cover up and the Bank of Ghana simple response to parliament is respectfully to allow the pending legal processes to run their course.”

“Indeed sometimes in September 2018, the 7th Parliament undertook a formal inquiry into the financial sector clean up,  the key factors that led to it and the manner in which it was carried out.  Among other things to appear before it and to answer specific questions aimed at assisting the committee to understand the events surrounding the cleanup exercise. The Bank of Ghana cooperated fully with the committee and provided all the necessary information to assist its members reach their own conclusions”, he further noted.

Dr. Addison explained that the Central Bank had hoped the committee would have made available its report to Parliament and the public after deliberations, but nothing was heard.

He called for public support for the receivers to be able to retrieve all properties of the defunct financial firms, as well as the government, to recover the over ¢19 billion bailout fund used to settle depositors funds. 

The Governor also used the opportunity to request the Finance Committee of Parliament to make public its investigative report on the banking sector clean-up exercise, which was conducted in 2018.

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